Examining the Relationships Between Sustainability Orientation, Entrepreneurial Orientation, and SME Financial Performance in the Italian Agri‐Food Sector

ABSTRACT

This study investigates the relationship between sustainability orientation, entrepreneurial orientation (EO), and financial performance of Italian agri‐food SMEs, using panel data (2017–2022) and random‐effects models. The analysis identifies three sustainability dimensions—social, environmental, and external stakeholder‐oriented—examined alongside EO dimensions through a multidimensional approach. Results show that environmental sustainability is not significantly associated with financial performance. Social sustainability is negatively associated with operating and net income, while external stakeholder‐oriented sustainability is negatively associated with operating and net income, ROI, and ROA. EO dimensions show heterogeneous associations: innovativeness is positively associated with ROA, proactiveness with operating and net income, and risk‐taking is negatively associated with ROE. Competitiveness and autonomy show no significant associations with financial performance. Overall, the findings highlight heterogeneous relationships between sustainability and EO dimensions and different measures of financial performance, underscoring the value of examining both strategic orientations at the dimensional level over time.